On the economy, politicians debate, central bankers decide

Canada is not enjoying the sort of recovery going on in the States. Unemployment is much higher here.

It's a tough call. But so far, Poloz has stuck to a stimulative policy, the classic solution in a time of sluggish growth and excess capacity.

Not the current federal government, though. In order to be able to declare that he has finally run a surplus, which it turns out he did last fiscal year, Harper has effectively begun a government austerity program.

It's known as "lapsed spending." The government discourages federal departments from spending the money it allocated to them in the budget, obliging them instead to return $9 billion last year to general revenues.

In other words, the Conservative government has cut government spending during a stagnant, if not recessionary economy.

In fact, Harper's obsession with running surpluses (perhaps understandable after six consecutive deficits) is probably at least one reason Poloz has to keep interest rates where they are.

"Poloz has his foot on the accelerator, because Harper has his foot on the brake," says Prof. Christopher Ragan, a specialist in monetary policy at McGill University.

"From an economic point of view," says Ragan, running a surplus at a time like this in order to make a political statement "is exactly the wrong thing to be doing."